WASHINGTON, Sept 14: A North Dakota wheat group on Friday said it has asked the Bush administration to slap duties ranging up to 25.5 per cent on imports of Canadian wheat to offset unfair trade practices.
The North Dakota Wheat Commission filed the petitions asking for protection against the allegedly “dumped” and subsidized imports with the US Commerce Department and the US International Trade Commission (ITC).
Earlier this year, the US Trade Representative’s office turned down the wheat group’s request for restrictions on Canadian wheat imports under another provision of U.S. trade law known as “Section 301.”
But it urged the North Dakota growers to pursue antidumping and countervailing duties against the imports as part of a four-pronged approach aimed at ending the Canadian Wheat Board’s monopoly on Canadian wheat exports.
We can compete with Canadian farmers, but not against the unfair pricing of the Canadian Wheat Board, North Dakota Wheat Commission Chairman Larry Lee said in a statement
If Canada’s government monopoly is allowed to continue to take wheat from Canadian farmers and sell it for whatever price it wishes to set, while we attempt to sell our wheat on the open market for a fair value, the US farmer will be left behind, Lee said.
An North Dakota Wheat Commission spokeswoman said the group was asking for antidumping duties of 9 per cent on Canadian durum wheat and 12 per cent on hard red spring. It is seeking additional countervailing duties of 14.7 to 25.5 per cent, she said.
The Commerce Department has 20 days to decide whether to accept the petition. If it does, the ITC has another 25 days following that to determine whether the imports have materially harmed or threaten to materially harm United States producers.
If the petition clears both those hurdles, the Commerce Department must calculate the level of duties needed to offset the allegedly unfair pricing and subsidies. A final International Trade Commission vote on injury is required for the duties to take force.
The antidumping and countervailing duty investigations can take six months or longer from beginning to end.—Reuters